Ashish Shrestha

Executive Chairman

Leon Motors Private Limited

“A little over a decade ago, Mitsubishi Pajero was the synonym for an SUV (Sports Utility Vehicle). That perception changed during the quiet period of eight years but we hope to bring back the lost glory of yesteryears.”

 

Leon Motors Private Limited is the authorised sub-distributor in Nepal for Mitsubishi Motors Corporation, Japan and Mitsubishi Fuso Group, Japan. The company started importing Mitsubishi vehicles in 2008 and has sold over 150 units so far. 2010 was its most productive year in which it sold 70 units. The vehicles sold by the company fall on different price points ranging between Rs 4 million and Rs 12 million.

 

Leon Motors is the brainchild of its dynamic Executive Chairman Ashish Shrestha. Coming from a family that has traditionally dealt in gold for generations, Shrestha holds an MBA degree from American InterContinental University in United Kingdom. After returning to Nepal in 2006, he wanted to establish a business that suited his personality and justified his management acumen. And thus, Leon Motors came into being in 2007. It is currently focused on reviving the brand image of Mitsubishi Motors. The brand lost its charm and took a beating in the Nepali market due to non-availability of new models from 1998 till 2006. Shrestha says, “A little over a decade ago, Mitsubishi Pajero was the synonym for an SUV (Sports Utility Vehicle). That perception changed during the quiet period of eight years but we hope to bring back the lost glory of yesteryears.” He believes that 236 per cent duty on importing vehicles is astronomically high and plagues Nepali automobile market to a large extent. The company plans to revive Mitsubishi Fuso trucks and buses in 2011 to achieve its targeted growth of 10 per cent.

 

Shrestha rues the unhealthy competition that exists in the automobile market. According to him, a number of automobile companies in Nepal under-invoice their transactions which helps them to dodge the tax and reduce the retail price or increase their profit. He strongly believes that this unethical practice needs to be stopped as it creates unfair competition in the market. To make his point strong, Shrestha proudly shows a certification from TRACE Inc, a US based internationally recognised organisation promoting transparency and anti-bribery compliance in international business transactions.

 

The company practices an ‘open door policy’ where the employees have direct access to Shrestha for any matter they need to discuss, be it a suggestion or a complaint. An outsider might as well feel that it’s a family run business. That’s the level of camaraderie which exists between the employees at Leon Motors. As part of its CSR (Corporate Social Responsibility) initiative, the company supports an NGO, Society Developer Nepal with its endeavour in providing education for underprivileged children.

 

Leon Auto Works is the sole authorised after-sales and service centre for Mitsubishi Motors Corporation and Mitsubishi Fuso Group. Besides this servicing arm of Leon Motors Private Limited, there are a number of group companies (see box).

 

This group of businesses employs more than 50 people on a permanent basis and considers itself blessed to have a dedicated workforce, many of whom have been involved in their jobs for years now. Shrestha believes that the market is circled with inflated prices, for example, unreal values of real estate holdings. He adds that this coupled with political instability are the major reasons behind people refraining from making investments in the country. On an optimistic note, however, the group plans to enter hospitality business by establishing boutique hotels. It is currently scouting for properties in Kathmandu and Pokhara and seeks to contribute towards Nepal’s tourism prospects. On a personal note, Shrestha has the burning desire in him to bring more hydropower projects to Nepal. He hopes to succeed in convincing investors to do so as it promises to put the country back on track to attain sustainable development. n

 

 

Sister concerns of Leon Motors Pvt Ltd

1. Leon Global Private Limited (Trading)

    A successful trading house, it has represented an impressive list of international organisations on turnkey projects in Nepal. The company promotes development related projects in the tourism and civil aviation sector, establishment of industries, construction of hydropower projects, supply of communication equipments etc to Nepalese Army, Nepal Telecom and Civil Aviation Authority of Nepal and supply of construction equipments to the Ministry of Physical Planning & Works among others. It is extensively involved in liaison work and promotional activities and provides complete local support during pre and post tendering periods.
 

2. Leon Hager International Private Limited (Distribution)

    It is into distribution business representing various international beverage companies around the world. It currently imports and distributes alcoholic and non alcoholic brands such as ‘Nite’, a ready-to-drink (RTD) product from Thai Spirit Industry Co Ltd, Thailand; ‘Ignite’, a vodka based RTD product from Ignite Corp Pty Ltd, Australia; ‘Jugular’ and ‘Rock’ energy drinks from Jugular Global Pacific Ltd, Australia; ‘Victoria Bitter’ – Australia’s highest selling beer – popularly known as VB from Foster’s Group and rich and robust cooking wines from Australia and France among other European countries.

3. Green City Development Private Limited (Township Development)

    This company was established in 2007 along with the leading business houses to develop first-of-a-kind township within the Kathmandu Valley. It plans to build a township covering approximately 387 acres of land with all modern amenities one can think of. Currently, the company is busy purchasing land at the site of the planned project. While it hopes to complete its land acquisition deals by this year end, the project plan and design is being prepared by a Singapore-based firm.
 

4. Ivory International Private Limited (Construction)

                Involved in construction business, it has tied up with a leading Chinese construction company, China Railway Engineering Group Co Ltd. This joint venture has been constructing various projects that include commercial buildings, hospitals, hotels, apartment buildings, super malls, roads, bridges, hydropower plants and many more.

 

SWOT Analysis

Strengths

*Strong management team

*Prime location (Shantinagar, New Baneshwor)

*Famous brand name

* Innovative ideas

Weaknesses

* Branding hiatus between 1998-2006

* Lack of a state-of-the-art showroom

Opportunities

* Impending expansion

* Sports models

    (small hatchback cars by 2011 end)

Threats

*Too many players in the market

* Unhealthy competition

* Competitors’ prices

 

 

Mitsubishi Products in Nepal